2016 (8) TMI 1147 - HC - Customs

High Court Orders Release of Detained Goods with Bank Guarantee for Duty Dispute

M/s Inder International Versus UOI and others.

The High Court directed the release of goods detained by the Directorate of Revenue Intelligence (DRI) upon payment of due duty. The petitioners were ... Release of detained goods - Cold Rolled Steel - irresposible conduct of the respondents authorities, apparently to harass the petitioner - Held that: - As per the stand taken by learned counsels for the petitioners the issue of BCD is not there for the aforesaid four consignments. Hence, no bank guarantee is required to be furnished - Considering the aforesaid factual matrix and seeing the conduct of the respondents, this Court deems it appropriate to accept what is being stated by the petitioners regarding calculation of duty especially when the amount calculated by the respondents for five consignments as such has not been disputed even by the petitioner and there cannot be any dispute as the duty is calculated on ad valorem basis. The goods be released to the petitioners immediately on deposit of the duty and furnishing of bank guarantees as mentioned - petition allowed - decided in favor of petitioner. Issues:Release of detained goods, payment of duty, furnishing bank guarantee, dispute over nature of goods, conduct of respondent authorities, calculation of duty, bank guarantee details, release of consignments.Analysis:The High Court directed the release of goods detained by the Directorate of Revenue Intelligence (DRI) upon payment of due duty. For disputed exemption of basic custom duty, the petitioners were asked to provide a bank guarantee. In one case, an additional bank guarantee was required to cover interest on demanded duty. The DRI initially detained goods as Hot Rolled Coils/Sheets, later found to be Cold Rolled Steel as claimed by the petitioners. Despite court orders, the goods weren't released, and the Department demanded PD Bonds, which was objected to by the petitioners. The Court noted the delay and apparent harassment by the authorities, emphasizing that the Department's stance was incorrect, as confirmed by testing at Bokaro Steel Plant.During proceedings, the Court requested details of duty payable and bank guarantees. The petitioners provided duty calculations for various consignments, which were accepted by the Court due to the respondents' conduct. The Court directed the release of consignments upon payment of duty and furnishing bank guarantees. The Court detailed duty amounts and bank guarantee requirements for each consignment, ensuring immediate release upon compliance. The matter was adjourned to a later date.The judgment highlighted the need for accurate duty calculations, proper conduct by authorities, and timely release of goods. The Court's decision aimed to resolve the dispute, ensuring fair treatment of the petitioners and adherence to legal procedures.